Adidas Will Lose $650 Million After They Dropped Kanye's Yeezy Products
Germany's largest apparel and footwear company Adidas's Shares fell sharply on Tuesday after They decided to cut all ties with Rapper Ye.
The company reported that they lost about $247 million this year due to declining sales of Yeezy Products.
Despite all this, The company has decided to reduce its margins from 7% to 4%, due to which there was such a big fall in their shares.
Aneesha Sherman has confirmed in her statement that Adidas will completely cease production of Yeezy products, which account for a significant share of Adidas sales.
Bernstein analyst Aneesha Sherman predicted that Adidas would cut its revenue by about $398 Million following the ban on Yeezy products.
So Adidas would lose a total of about $645 million due to the severance of all ties with Ye.
Of this, $247 million will be lost Adidas due to the discontinuation of Yeezy Products's sale.
And according to the prediction of Aneesha Sherman, Adidas will suffer a loss of about $398 million in 2023.
Adidas's Shares fell 5.6% to $97.96 as the company decided to decline Yeezy Products over 15% in the past 5 days.